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Southeast Asia Underspends on Agriculture, Fan Warns

Former IFPRI director-general Fan Shenggen says governments in the region are investing too little in food and farming.

Updated on Nov. 4, 2026 in Nutrition

Isometric editorial illustration of stacked burlap rice sacks beside a terraced paddy field, evoking public agricultural investment in Southeast Asia.
Fan Shenggen, former IFPRI director-general, said Southeast Asian governments are underinvesting in food and agriculture, with most ASEAN countries spending under 10% of budgets on the sector. AI Illustration. Upload story photo >

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Fan Shenggen, former director-general of the International Food Policy Research Institute, criticized Southeast Asian governments at the Asia Pacific Agri Food Summit in Singapore for underspending on food and agriculture. An August 2025 ISEAS Perspective paper found that all ASEAN countries except Thailand have consistently allocated less than 10% of annual national budgets to agriculture.

Why it matters

Governments remain the largest investors in agriculture and rural services in the region, so shortfalls in public spending directly shape food systems. The findings suggest the region is trailing peers as it works to strengthen food security.

ASEAN governments, apart from Thailand, have consistently spent under 10% of national budgets on agriculture, according to an August 2025 ISEAS Perspective paper. Agricultural research spending in China is estimated at roughly 1% to close to 2% of agricultural GDP, a benchmark the paper does not directly compare against regional figures.

The players

Fan Shenggen

Chair professor at China Agricultural University and dean of the Academy of Global Food Economics and Policy, formerly director-general of the International Food Policy Research Institute.

ISEAS-Yusof Ishak Institute

Singapore-based regional research institute that published the August 2025 Perspective paper on ASEAN agricultural budgets.

The details

Fan said Malaysia, the Philippines and Cambodia have seen the largest declines in agricultural investment. Much of the foreign direct investment in the sector was directed toward supply chain traceability, transparency and information systems, while the food, agriculture and forestry sector attracted about 10% of FDI in 2020.

Timeline

  1. August 2025: ISEAS Perspective paper reports ASEAN agricultural budget allocations.

  2. 2020: Food, agriculture and forestry sector attracts about 10% of foreign direct investment.

  3. Last week: Fan speaks at the Asia Pacific Agri Food Summit in Singapore.

Health Landscape

The ISEAS Perspective paper's finding that ASEAN members other than Thailand spend under 10% of budgets on agriculture sets the baseline for Fan's critique. Fan's comparison with India and China places Southeast Asia's agricultural investment against regional peers that are increasing their own food-sector spending.

Shifts in public agricultural spending can affect the availability and cost of staple foods that shape everyday diets. Readers tracking food prices and nutrition access may see the effects of budget decisions made by governments in the region.

The takeaway

Agricultural budgets are a direct lever on regional food security, and the gap between Southeast Asia and its peers is a measurable one. Tracking how governments allocate funds to farming and research offers a clear signal of future food access.

Further reading

Explore more on Nutrition to see how agricultural investment shapes the food people eat.

Source note: This article includes information reported by AgNavigator.

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